July 2023 Credit Industry Snapshot Report

The July 2023 Credit Industry Snapshot is a report by TransUnion that outlines trends in consumer credit, highlighting rising balances across various credit products and mixed delinquency rates. The report indicates that inflation remains elevated, with the Consumer Price Index (CPI) at 3.2%, influencing balance growth in consumer wallets. The Federal Reserve's response included a 25 basis point interest rate increase, raising the Fed Funds rate to a range of 5.25% to 5.50%. This environment has made borrowing more expensive for consumers. Despite these challenges, the job market showed resilience, with positive growth reported for 31 consecutive months and a slight decrease in the unemployment rate to 3.5%. The report also notes improvements in consumer sentiment, although concerns about inflation and potential economic slowdown persist. Key insights include month-over-month changes in delinquency rates and average balances for credit products such as mortgages, bankcards, and unsecured personal loans, based on TransUnion research data.